In the three weeks since the Stock Connect opened, there has
been significant scrutiny on the lack of trading volume. But
market participants believe critics should focus instead on the
longer-term implications of the scheme.
Since its opening on November 17, low trading volumes on the
Stock Connect have been criticised – particularly on
the southbound link.
Many focused on statistics that showed only 1.8% of the
daily southbound quota had been used, while 18% of the
northbound quota was utilised.
But panelists at the IFLR Asia Capital Markets Forum last
week agreed that that the opening of the Stock Connect seems to
be going well on an operational level, which is crucial for
maintaining confidence in the scheme.
"A new financial product is not a Ferrari," said Nick
Ronalds, managing director of equities at the Asia Securities
Industry and Financial Markets Association (Asifma). "It